Brockhaus* states, that insanity is the standard-language term used to describe mental disorders, where delusional ideas surface and as a consequence futile actions are committed. It is almost the same when you take a closer look at the expansion promoted by many companies under the catch phrase ‘globalization’. Surely, when Asia is spreading out in front of one’s own door step and a flight from Paris to San Francisco does not take up more time than travel by train from Munich to Hamburg, then businesses have to prepare for those new premises. Despite all of this, those in charge have to use common sense, otherwise exactly this will happen, what is commonly referred to as insanity.

The big German banks are one example of what happens, when insanity takes over. Formerly rich and really powerful, but in a sense impressed by the sentiment to be provincial, they started after the succession of generations where the post war bankers passed the baton to their successors, on to new objectives. A McKinsey study describing a new banking era and the upcoming globalization gave the impulse for the new goals, far out there in the world. They wanted to, no, they had to become “global players”.

At least, this is how they explained their activities to those left behind, their customers, who had been loyal and faithful customers for decades and even longer. They were informed casually that even for them things would change quite a bit. It was implied to the ordinary man in the street, that they would prefer it, if he did his banking somewhere else. Private individuals did no longer fit into the concept and they tried to press them into new structures.

Billions of Euros were spent on reorganization, mergers and on attempted mergers, buy-outs and of course the build-up of global presence. Money didn’t seem to matter. They finally found out that it is possible to empty even the largest barrel no matter how large it is, after the whole insanity of the globalization became apparent. This is the result: Immense assets were lost, most of the customers peeved or alienated. Thousand of jobs were lost, precious property had to be sold in order to pay off debt. The employees are frustrated and worst of all the big German banks have become easy takeover candidates.

Globalizations and size are not the same. To the contrary, it is globalization which offers the biggest chances to small and medium sized businesses. Because due to their innovative strengths they can operate faster, more target oriented than their larger competition.

Incidentally, globalization is not something that takes place way out there in the world. Globalization takes place everywhere it is surrounding us, in our immediate vicinity. And we can not leave globalization up to others. All of us are touched by this process and that is why there is no successful strategy without a clear notion of what we think globalization is.